Elon Musk is being sued over his tweet that said “financing secured.”

But he ended it with the two words Funding secured, which forced Elon Musk to spend millions of dollars in fines and legal costs.
Although Musk had discussed the funds he would need to take Tesla private with Saudi Arabia’s sovereign wealth fund officials, it later emerged that the funding was anything but secured, according to CNN.Tesla’s shareholders contend that Musk’s 2018 declaration that money was secured to take the electric car manufacturer private deceived them. In the days following Musk’s comments on August 7, 2018, shareholders who purchased or sold Tesla stock are suing for damages. After August 17, 2018, the company’s shares surged upward before falling once more.
Image source- Twitter The Securities and Exchange Commission, a federal body tasked with protecting investors by compelling executives, to tell the truth, filed a civil lawsuit in response to Musk’s tweet. At first, it wanted to have him removed as CEO of Tesla. It ultimately came to an agreement with Musk in which he and Tesla both consented to pay USD 20 million in fines, and Musk renounced his position as chairman of the business but kept his position as CEO. It also demanded that other executives from the firm analyse any tweets he sent out in advance that contained crucial information regarding Tesla.Musk later claimed that he was only willing to settle because, if he had persisted in his legal battle, the banks would have stopped providing Tesla with the funds it required to continue, at a time when the company was already losing money and in financial trouble. He equated the negotiations with the SEC to someone holding a gun to his child’s head in remarks made at a TED conference last year.Nevertheless, despite Musk’s assertions that he has funding in place, Federal Judge Edward Chen, who is hearing the case that begins on Tuesday, stated in a decision last April that no reasonable jury could find Musk’s tweets on August 7, 2018, accurate or not misleading, according to CNN. Chen also rejected Musk and other defendants’ request to have the case dismissed before trial.They had argued that the San Francisco Bay area’s media coverage of Musk and his acquisition of Twitter, particularly its coverage of his subsequent layoffs at the company and his views on allowing tweets that might have previously been blocked for spreading false information, made it impossible to find an impartial jury. This is simply Musk’s most recent legal battle. He is also awaiting the outcome of a bench trial in a different shareholder action heard in Delaware state court, which challenges the Tesla remuneration package that made him the world’s richest man up to the recent drop in the value of the company’s stock, according to CNN.Share your thoughts with us in the comments.